How to Budget for Beginners – Free Google Sheet Budget Plan
Being able to manage and budget your money is important for your daily lifestyle to grow savings overtime. It can be a wake up call to see where your spendings actually go; thus, it is important to start getting more organized and listing down your expenses to give you a glimpse on how you are managing your money. This will lead you to find solutions and goals on how you will budget your money.
Different Methods:
1. Separating Variable and Fixed expenses
Many people like to separate their fixed and variable expenses to help them with their budgeting plan.
Fixed expenses are your expenses that stays the same amount and that you pay on a regular basis (Typically every month). For example, your rent, insurance, subscriptions, etc.
Variable Expenses are your expenses that can change from time to time. For example, dining out, shopping, gas, etc.
2. Categorizing Expenses
Separating your expenses with different categories can help you get a glimpse on where you are spending you month the most. For example, you can categorize them to transportation, food, fitness, entertainment, etc.
3. 50/30/20
The 50/30/20 Rule was popularized Elizabeth Warren as a suggestion on how you should split your income. This pretty much means 50% will be spent on needs which is your priority, 30% on wants (because you still want to enjoy life) and 20% will be on savings. To some people, this might not be realistic/reasonable so you can change the percentage based on your situation. For example you can make it 70/15/15, 60/20/20, etc.
All of the methods above are great ideas which is why we will combine them into one!
You can follow the video above, we’re going to work together through a google sheet that I created. You can do it your way if you prefer using paper and pencil. Just make sure and download the google sheet below.
DOWNLOAD Free Budget 101 Google Sheet (Click on ‘File’ then ‘Make a Copy’):
https://docs.google.com/spreadsheets/d/1LK5Yr4kSIncTGVW7gGriqQMgnJ8MjkKHHaaLJglsI4s/edit?usp=sharing
